Thursday, April 02, 2009

Japan's Nikkei Upbeat on Decision on US Auto Makers

At last, perhaps there is some good news for Japanese economy. Right now, there is a lot of uncertainty over to the major U.S. automakers like General Motors and this is not good for the world economy. Japanese investors in major markets are now hoping that a decision about the U.S. automakers and will be found very soon and that will put an end to the ongoing uncertainty. Not only that, I also feel that if U.S. automakers are in bad condition and even become bankrupt then there will be a problem in the car industry in the whole world and Japanese automakers like Toyota and Honda can do something to fill the vacuum and increase their market share.

Guardian wrote:

Japan's Nikkei average rose 3 percent on Wednesday, with carmakers such as Honda Motor Co climbing on relief that a decision on struggling U.S. automakers could be near, prompting bargain hunting. Sony Corp and other exporters gained on a brief bounce in the dollar after the Bank of Japan's tankan survey of business sentiment showed confidence tumbling at its fastest pace on record, while tech shares rose in the wake of gains by their U.S. peers.

In fact, there is a lot of uncertainty around the market at this moment not only in Japan but also in the rest of the world.